Cash Equivalents and Investments

9 Months Ended

Oct. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Cash Equivalents and Short-term Investments

In estimating fair value, the Company uses a three-tier fair value hierarchy as follows:

•Level 1 — Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets.

•Level 2 — Valuations based on other inputs that are directly or indirectly observable in the marketplace.

•Level 3 — Valuations based on unobservable inputs that are supported by little or no market activity.

The following tables present the estimated fair value of cash equivalents and short-term investments:


	As of October 31, 2025		As of January 31, 2025
	(dollars in millions)

Cash equivalents:
Money market funds (Level 1)	$	422	$	225
Certificates of deposit (Level 2)	—		23



Total cash equivalents	422		248
Level 2:
Short-term investments (Available-for-sale):


U.S. treasury securities	1,517		1,788
Corporate debt securities	239		281
Certificates of deposit	62		45
Total short-term investments	1,818		2,114
Total	$	2,240	$	2,362

The following table presents the contractual maturities of the Company’s short-term investments:


	As of October 31, 2025
	Estimated Fair Value
	(dollars in millions)
Due within one year	$	1,511
Due between one to five years	307
Total	$	1,818

Interest receivable of $22 million and $24 million is included in Prepaid expenses and other current assets on the condensed consolidated balance sheets as of October 31, 2025 and January 31, 2025, respectively.

There were no material differences between the estimated fair value and amortized cost of our cash equivalents and short-term investments as of October 31, 2025 and January 31, 2025.

For available-for-sale debt securities that have unrealized losses, there were no material credit or non-credit related impairments for short-term investments as of October 31, 2025 and January 31, 2025.

Strategic Investments

Strategic investments primarily include equity investments in privately-held companies, which do not have a readily determinable fair value. Strategic investments are classified as Level 3 in the fair value hierarchy as nonrecurring fair value measurements may include observable and unobservable inputs. As of October 31, 2025 and January 31, 2025, the balance of strategic investments was $32 million and $30 million, respectively.